InterGest South Africa is listed as a consulting firm under the Bundesamt für Wirtschaft und Ausfuhrkontrolle – BAFA Consulting Vouchers Africa. This means that our market entry consultations and services are funded in the following countries:

• Southern Africa (South Africa, Namibia)
• East Africa (Kenya, Tanzania and Uganda)
• West Africa (Nigeria)

The content below explains the qualification categories that German companies need to meet in order to qualify for funding, the application process as well as the rules and regulations around obtaining the funding.

1.  Aim of the “Consulting Vouchers” Funding Program

1.1   The aim of the program is to use needs-based consulting services to make it easier for German companies to enter the African market, to increase the competitiveness of the companies to be advised and thus to make an effective contribution to maintaining as well as creating jobs both in Europe and in African target markets Afford.

1.2   The funding is intended to assist German companies in correctly assessing possible economic risks associated with entering the African market.

2.  Subject of the Business Network Funding

2.1   The subject of the funding is external consulting services for the preparation and implementation of economic projects in African target markets by listed consulting companies/organizations.

2.2   The funded advice can relate to questions about specific industries or economic sectors, African target markets, and legal framework conditions about foreign trade and/or foreign investments and economic studies for the prospective project in Africa.

• • Funding will not be granted if:
    • If consulting services were already carried out before the decision on the grant was made.
    • If consulting services for market entry in Africa that have already been funded or promised by other aid from the EU, the federal government or a country.
    • If services are provided to partner or affiliated companies or where the consulting company/organization has a corresponding economic self-interest in generating income for the consulting company, e.g. B. a profit sharing.
    • Companies in difficulty under Article 2(18) of the General Block Exemption Regulation.

• • The advice is not eligible if:

• • • The company to be advised has not complied with a recovery order based on an earlier decision by the EU Commission to determine the inadmissibility of state aid and its incompatibility with the internal market.
    • The company to be advised has concluded the consulting contract with the consulting company/organization before the decision on the donation (consulting voucher) has been made, the consulting has started or agreements for future consulting have been concluded in a legally binding manner.
    • The consulting company/organization is no longer listed at the time the contract is concluded with the company to be advised.

3.  Who can Apply for Funding:

3.1   The funding for consulting services is aimed at legally independent small and medium-sized commercial German companies with a permanent establishment or branch in Germany who are interested in entering the African market.

3.2   A German company is considered to be medium-sized German if it employs fewer than 500 people at the time of application and generates a maximum of EUR 50 million in sales annually.

4.  Funding Amount:

4.1   For a consultant day, a maximum of 1,200 euros net are eligible per day, depending on the consulting issue.

4.2   A maximum of 15 consultant days are funded per consultation. The eligible daily maximum rates for the respective consulting topics are as follows:

4.3   A consulting day consists of at least eight hours. Preparation and follow-up of the consultations, travel expenses and other ancillary costs including the costs of financial transactions are compensated with the respective daily rate.

4.4   In one calendar year, a maximum of three advisory vouchers of a maximum of 13,500 euros each can be used. The annual maximum amount that can be paid out is therefore 40,500 euros. This corresponds to a funding rate of 75% when using three times 15 consulting days at a maximum of 1,200 euros net.

4.5   Only activities in the same category (maximum daily rates) can be applied for each consultant voucher. It can e.g. For example, advice on customs/import regulations and logistics and transport can be combined, but not customs/import regulations with the development of a sales structure or financing.

4.6   The service provided is taxable at the full rate of sales tax applicable in the country in which the service was provided. The expenses not covered by the consulting voucher are to be paid by the company to be advised (beneficiary) as a personal contribution.

5.  Application for Consulting Vouchers

5.1   Interested companies first find out more about the target market and eligible projects on the website of the “Business Network Africa” office. The office staff are also available by telephone for non-binding advice on the basic feasibility and eligibility of the advice project. With the information from the homepage and, if necessary, from the discussion with the office, please look for a listed consulting company/consulting organization and contact the consulting company/organisation.

5.2   Important! Please note that a consulting contract may only be concluded after the consulting voucher has been approved.

5.3   After you have chosen a listed consulting company/consulting organization from the list, please submit an electronic application for funding for consulting services.

5.4   A total of three applications can be submitted per year. The applications can only be submitted one after the other, i.e. the second application can only be submitted after BAFA has checked the proof of use of the first application.

Further information pertaining this process, find out how to Receive Government funding for your business activities here: BAFA Funding presentation.

With InterGest South Africa’s reputable name in the industry of international consulting vouchers and particularly consulting vouchers for Africa, clients are reassured of our services and often will choose to work with us. Our experts hold unique knowledge with regard to consulting vouchers and are always eager to assist. With 20 years of service behind us our team is well accustomed to any funding queries you may have. For more information on how we work or to get in contact, visit our website: https://intergest.co.za/

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One of the main objectives of the AfCFTA Country Business Index (ACBI) is to assess the perceived impact of the African Continental Free Trade Area (AfCFTA) on the private sector’s ability to trade and invest across African borders once the area is fully operational.

The AfCFTA came into force in January 2021, making it the new pillar of trade integration in Africa. The aim is to create a single continent-wide market and improve business competitiveness.

Following the launch of the Index in 2018, the ECA began testing and refining the tool to measure and compare the views of businesses across Africa on the implementation of the AfCFTA. The countries were selected for three phases of the pilot study. After Phase 1, which was conducted in Cameroon and Zambia, the methodology was refined and surveys were conducted in seven additional countries: Angola, Côte d’Ivoire, Gabon, Kenya, Namibia, Nigeria and South Africa.

This report presents the results from this second phase of the implementation of the Index. In the third phase, the Index will be introduced in the Democratic Republic of Congo, Egypt, Morocco, Rwanda, Senegal and Tunisia.

AfCFTA Country Business Index Guide:

https://intergest.co.za/wp-content/uploads/2022/05/New-tool-to-measure-ease-of-inter-Africa-trade-launched.pdf

Sources

• https://www.newtimes.co.rw/news/new-tool-measure-ease-inter-africa-trade-launched

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To import goods into Kenya, an importer must use the services of a clearing agent who will process import documents electronically through the Kenya Customs Simba 2005 system and clear the goods on your behalf.

Customs authorities will determine the duties payable depending on the value of the goods and the applicable duty rate. The East African Community Common External Tariff sets the rates of duty for imported goods.

Kenya requires Pre-Shipment Verification of Conformity (PVoC) for exports to Kenya. Exports to Kenya also require an additional ISM, which is mandatory for all imported products sold in Kenya, so that consumers can identify which imported products have been certified by KEBS.

The following documents are required for all Kenyan imports:

• Import declaration forms (IDF)
• A chain of custody from the PVoC regulated products officer,
• An ISM where applicable, and
• A Valid pro forma invoices from the exporting company.

In accordance with the provisions of Sec.34 of the East African Community Customs Management Act (EACCMA) 2004, goods must be declared for importation within twenty-one days of the commencement of unloading or in the case of vehicles, on arrival.

The importer or clearing agent must record all mandatory details required when declaring an import in the customs system.

Duties and taxes on imports

Customs tariff

The Kenyan tariff is based on the nomenclature of the Harmonised Commodity Description and Coding System (HS 2017). It corresponds to the common external tariff of the EAC applied by the Member States Kenya, Tanzania, Uganda and Burundi towards third countries with which there is no preferential agreement.

Some products of HS Chapters 72 and 73 (iron and steel and articles thereof) are subject to specific or compound customs duties. In addition, there are sensitive products covered by Schedule 2, which are subject to higher tariffs ranging from 35 to 100 %. Sensitive products are goods where EAC member states see potential for local production and trade, such as agricultural products and textile fabrics.

The basis for calculating the duty is the customs value. In the context of a purchase transaction, this is basically the transaction value, i.e. the price actually paid or payable between the independent buyer and seller on a cif (cost, insurance and freight) basis import customs office in Kenya.

In addition to sensitive goods covered by Schedule 2, EAC Member States may, upon request, suspend, reduce or increase import duties by derogation from the Common External Tariff for a specified period under the “stay application scheme” or “duty remission scheme”.

The EAC tariff with product-specific variations in Kenya is published on the Ministry of Industry’s digital trade platform.

Non-tariff duty exemptions

The non-tariff duty exemptions are summarised in the Fifth Schedule (Exemption) of the EAC Customs Actv. These include, for example, supplies to the Kenyan government, diplomatic missions, recognised aid organisations and people with disabilities. Also generally exempt from customs duties are, for example, samples of goods without commercial value, educational materials, agricultural inputs such as seeds and fertilisers, industrial spare parts for machinery of HS Chapters 84 and 85, specialised equipment for the development and production of solar and wind energy, and diagnostic reagents and equipment.

Value Added Tax

Supplies of goods and services in the Kenyan tax territory as well as imports into Kenya are generally subject to value added tax (VAT).

The regular VAT rate is 16 per cent. The taxable base for imports is the customs value plus all import duties with the exception of the import VAT itself. In addition to the regular rate, there is a reduced rate of 0 per cent. The zero rate applies, for example, to certain basic foodstuffs and medicines, intermediate products for the manufacture of medicines, pesticides and electrical accumulators, as well as supplies to companies in export processing zones or special economic zones.

A number of goods are exempt from VAT. These include certain agricultural products, petroleum products, pharmaceuticals and medical equipment. The detailed lists can be found in the annexes (First and Second Schedule) of the Value Added Tax Act.

In addition to fees and charges, excise duties are also levied on various goods.

Excise Duty

The manufacture and importation of certain goods in Kenya is subject to excise duty. These include soft and alcoholic drinks, tobacco products, petroleum products, cosmetics, plastic bags and motor vehicles.

The taxable amount on importation is the customs value of the goods plus the customs duty.

Only authorised traders are allowed to import or produce excisable goods. Licences are issued by the tax authority KRA for a period depending on the category of goods. Authorised traders are obliged to affix a tax stamp on each package of an excisable product.

Import Declaration Fee

A customs clearance fee of 3.5% of the customs value is charged for the import of finished goods. Imports from member states of the East African Community EAC or the Common Market for Eastern and Southern Africa COMESA are exempt from the customs clearance fee.

Railway Development Levy

An infrastructure charge of 2 percent of the customs value is levied on the import of finished goods for the expansion of the rail network. A reduced customs clearance fee of 1.5 per cent applies to imported raw materials and intermediate products used by approved manufacturers in the industrial sector or for social housing. Imports from EAC or COMESA member states are exempt from the customs clearance fee.

Export regulations – Export from the EU

EU export regulations state that all goods exported to a non-EU country must be cleared through customs.

                Restrictions

The cross-border movement of goods and services is in principle free. However, restrictions are imposed on certain goods, countries or persons for various reasons. Special regulations may also apply to the movement of capital and payments.

Restrictions have been imposed on certain countries for foreign or security policy reasons, which in some cases significantly restrict economic trade with the country concerned.

Restrictions can generally be divided into 3 following embargo measures:

1. Arms embargo – prohibits the export of military equipment to the country in question, usually results from §§ 74 ff. Foreign Trade and Payments Ordinance (AWV)
2. Partial embargo – certain prohibitions and restrictions on trade with the country concerned, regulated by EU regulations.
3. Total embargo – Prohibition of all economic transactions with the relevant country (currently non-existent), regulated by EU regulations.

Kenya is not currently affected by any of these embargoes. You can find the list of affected countries here.

In addition, the EU has taken measures to contribute to the fight against terrorism and to restrict economic transactions with persons held responsible or liable for the political situation in an embargoed country.

These restrictions apply, inter alia, to ISIL (Da’esh), Al-Qaida, Taliban and other suspected terrorist individuals and entities, as well as individuals, groups and entities associated with them.

A list of the persons and entities concerned can be found here.

There are also restrictions and bans on the export of certain groups of goods. A list of the goods this affects can be found here.

Capital and payment transactions with foreign countries are also free in principle. However, there are restrictions and reporting requirements in certain cases. More information on capital and payment transactions can be found here.

Export duties

Export duties can be levied on the export of goods from the customs territory of the EU. Since it is usually in the EU’s interest to export goods to third countries and thereby generate revenue, export duties are rarely levied. However, if world market prices for a product that is in short supply on the EU market are higher than the prices on the EU market itself, export duties are also levied to make exporting this product less attractive.

EORI number

The EORI number (Economic Operators Registration and Identification number) is used to register and identify economic operators throughout the European Union.

If your company does not yet have an EORI number, you should apply for one in particular in good time before lodging a customs declaration or an entry or exit summary declaration for the first time.

Export regulations – Export from Kenya

                Registration

Goods for export shall be declared in the prescribed manner and the owner shall provide the customs authorities with full details of the goods specified in the declaration on the basis of supporting documents. The goods declared shall be exported within thirty days of the date of the declaration.

                Requirements

The exporter must use the services of an approved customs broker. A customs broker is appointed to process the export documents in the customs system and assist in clearing the goods on behalf of the exporter.

An export duty is levied on some selected goods, which are listed in the first schedule of the Miscellaneous Fees and Levies Act of 2016.

Export documents

The number and type of documents required to process an export order for your products must be carefully analysed to avoid costly mistakes and delays. In addition to the export sales contract for the delivery of goods to customers, exporters can also contract with organisations that provide services such as packaging, insurance and transport of cargo, and also use the services of a freight forwarding company that acts as an intermediary in the fulfilment of various tasks.

When a business relationship is established with a service provider, a document is created that constitutes a legal contract. The customer also needs these documents to be able to collect the cargo.

In addition to these documents, the authorities of the exporting and importing countries may also require documents such as licences to prove that the relevant government agency has approved the export/import transaction.

The following documents are required when exporting from Kenya:

• Commercial invoice (certified invoice)
• Bill of Lading (B/L)
• Airway Bill (AWB)
• Certificate of origin
• Insurance Certificate
• Freight insurance
• Packing list
• Certificates of inspection prior to shipment

More information on the required export documents can be found on the Kenya Promotion & Branding Agency website.

                Export process

The process for exporting goods from Kenya can be summarised in three steps:

1. Entry declaration and clearance

The designated customs agent shall make a customs declaration (entry) in accordance with the provisions of section 73 of the East Africa Community Customs Management Act 2004. Customs shall process all declarations in accordance with the regulations.

• Completion, review and approval

The customs agent shall present the original customs declaration and the corresponding documents to the customs clearance or loading station for processing.

• Exit

After completion/verification, all compliant declarations are cleared and released. An export certificate is issued on exit via the border or port.

About InterGest South Africa

InterGest South Africa was established in 2003 to assist foreign companies in establishing and developing their business activities in Southern Africa. With almost 20 years of experience in assisting multinational companies enter the African markets, InterGest launched a service offering “Go2Africa”.

InterGest South Africa offers the most cost effective and efficient methods for developing African markets – a region with more than 300 million people, growing middle class and still one of the fastest growing economies in the world today.

Please click here to find out more about our services or send us an E-Mail to: contact@intergest.co.za.

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